Overall spend optimization process
A comprehensive cost optimisation process ensures that no aspect is forgotten and that the method is standardised:
- Eliminate: Decommission everything that doesn't exist
- Simplify: Eliminate duplication and combine execution tasks
- Utilize: Maximize resource utilization by spreading the load
- Standardize: Industrialize processes as much as possible to reduce variability
- Centralize: Seek economies of scale by capitalizing on key resources
- Automate: Eliminate manual procedures and automate as much as possible
- Rebalance: Compete for services that can be competed, renegotiate contracts
And then always start over! With a continuous improvement loop, because a FinOps approach is never finished.
The vision gives a target, changes are evaluated and then it all starts all over again. But in order to be able to evaluate changes and the achievement of targets, one must be able to measure (see "2S1 - Definition of objectives and KPIs").